Cashing In Pension Early Risks?
Pension Release is risky. If you do not have enough funds in your pension plan to last you through later life. If you take cash from your pension early you leave yourself with the possibility of being short of cash when you come to retire.
In some instances cashing in your pension early could be a prudent thing to do, especially if you reinvest the money into an investment which will give you a higher return than that of the pension plan.
Pension release should not be considered as an easy way for you to raise money quickly. A professional pension release consultant will give you an assessment of whether this financial undertaking is right for you. Pension release consultant should not try to sell you this service, so you must make sure that you use a completely reputable company. They will tell you in no uncertain terms whether this is the right thing for you to do or not.
In the UK you must now be aged between 55 and 62 in order to qualify the pension release. If you have the requirement for capital quickly, perhaps for an emergency or for another investment, then pension releasing may be a good solution for you. However, if you just want to raise money for a new car or possibly a holiday, then there are better solutions for raising this type of money.
You should definitely not take this decision lightly and make sure that you do all the research that is necessary in order to make sure that you are not left in the situation where you have no money to live on when retirement comes around.
Always make sure that you use a reputable company and a consultant who will give you advice, which is free and free of any obligations. if you’re consultant is pushy, then he is breaking the law. The advice given must be of the highest standard and if you are not right for pension release , then you will be informed.